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Note 3 - Loans Receivable and Allowance for Credit Losses - Loans | 9 Months Ended
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Sep. 30, 2024
Notes to Financial Statements |
Financing Receivables [Text Block] | NOTE 3 – LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES – LOANS The composition of the loan portfolio was as follows at the dates indicated:
|  | September 30, |  |  | December 31, |
REAL ESTATE LOANS |  | 2024 |  |  | 2023 |
Commercial ("CRE") |  | $ | 352,933 |  |  | $ | 366,328 |
Construction and development |  |  | 292,366 |  |  |  | 303,054 |
Home equity |  |  | 75,063 |  |  |  | 69,488 |
One-to-four-family (excludes loans held for sale) |  |  | 591,666 |  |  |  | 567,742 |
Multi-family |  |  | 238,462 |  |  |  | 223,769 |
Total real estate loans |  |  | 1,550,490 |  |  |  | 1,530,381 |
CONSUMER LOANS |  |  |  |  |  |  |  |
Indirect home improvement |  |  | 552,226 |  |  |  | 569,903 |
Marine |  |  | 76,845 |  |  |  | 73,310 |
Other consumer |  |  | 3,346 |  |  |  | 3,540 |
Total consumer loans |  |  | 632,417 |  |  |  | 646,753 |
COMMERCIAL BUSINESS LOANS |  |  |  |  |  |  |  |
Commercial and industrial ("C&I") |  |  | 296,773 |  |  |  | 238,301 |
Warehouse lending |  |  | 15,249 |  |  |  | 17,580 |
Total commercial business loans |  |  | 312,022 |  |  |  | 255,881 |
Total loans receivable, gross |  |  | 2,494,929 |  |  |  | 2,433,015 |
ACL on loans |  |  | (31,232 | ) |  |  | (31,534 | )
Total loans receivable, net |  | $ | 2,463,697 |  |  | $ | 2,401,481 |
Loan amounts are net of unearned loan fees in excess of unamortized costs and premiums of $5.9 million as of September 30, 2024 and $8.4 million as of December 31, 2023. Net loans include unamortized net discounts on acquired loans of $2.1 million and $2.6 million as of September 30, 2024 and December 31, 2023, respectively. Net loans do not include accrued interest receivable. Accrued interest receivable on loans was $11.8 million and $11.5 million as of September 30, 2024 and December 31, 2023, respectively, and was reported in “Accrued interest receivable” on the Consolidated Balance Sheets. Most of the Company’s CRE and multi-family real estate, construction, residential, and/or commercial business lending activities are with customers located in Western Washington, the Oregon Coast, or near our loan production offices in Vancouver and the Tri-Cities, Washington. The Company originates real estate, consumer, and commercial business loans and has concentrations in these areas, however, indirect home improvement loans, including solar-related home improvement loans, are originated through a network of home improvement contractors and dealers located throughout Washington, Oregon, California, Idaho, Colorado, Arizona, Minnesota, Nevada, Texas, Utah, Massachusetts, Montana, and New Hampshire. Loans are generally secured by collateral and rights to collateral vary and are legally documented to the extent practicable. Local economic conditions may affect borrowers’ ability to meet the stated repayment terms. At September 30, 2024, the Bank held approximately $1.11 billion in loans that are pledged as collateral for FHLB borrowings, compared to approximately $1.07 billion at December 31, 2023. The Bank held approximately $617.9 million in loans that are pledged as collateral for the Federal Reserve Bank of San Francisco (the “FRB”) line of credit at September 30, 2024, compared to approximately $631.1 million at December 31, 2023. The Company has defined its loan portfolio into three segments that reflect the structure of the lending function, the Company’s strategic plan and the way management monitors performance and credit quality. The three loan portfolio segments are: (a) real estate, (b) consumer, and (c) commercial business. Each of these segments is disaggregated into classes based on the risk characteristics of the borrower and/or the collateral type securing the loan. The following is a summary of each of the Company’s loan portfolio segments and classes: Real Estate Loans One-to-Four-Family Real Estate Lending. One-to-four-family residential loans include owner occupied properties (including second homes), and non-owner-occupied properties with four or less units. These loans originated by the Company or periodically purchased from banks are secured by first mortgages on one-to-four-family residences in our market areas that the Company intends to hold (excludes loans held for sale). Multi-Family Lending. Apartment term lending (five or more units) to current banking customers and community reinvestment loans for low to moderate income individuals in the Company’s footprint. CRE Lending. Loans originated by the Company primarily secured by income-producing properties, including retail centers, warehouses, and office buildings located in our market areas. Construction and Development Lending. Loans originated by the Company for the construction of, and secured by, commercial real estate, one-to-four-family, and multi-family residences and tracts of land for development that are not pre-sold. A portion of the one-to-four-family construction portfolio is custom construction loans to the intended occupant of the residence. Home Equity Lending. Loans originated by the Company secured by second mortgages on one-to-four-family residences, including home equity lines of credit in our market areas. Consumer Loans Indirect Home Improvement. Fixture secured loans for home improvement are originated by the Company through its network of home improvement contractors and dealers and are secured by the personal property installed in, on, or at the borrower’s real property, and may be perfected with a UCC‑2 financing statement filed in the county of the borrower’s residence. These indirect home improvement loans include replacement windows, siding, roofing, spas, and other home fixture installations, including solar related home improvement projects. Marine. Loans originated by the Company, secured by boats, to borrowers primarily located in states where the Company originates consumer loans. Other Consumer. Loans originated by the Company to consumers in our retail branch footprint, including automobiles, recreational vehicles, direct home improvement loans, loans on deposits, and other consumer loans, primarily consisting of personal lines of credit and credit cards. Commercial Business Loans C&I Lending. C&I loans originated by the Company to local small- and mid-sized businesses in our Puget Sound market area are secured primarily by accounts receivable, inventory, or personal property, plant and equipment. Some C&I loans purchased by the Company are outside of the greater Puget Sound market area. C&I loans are made based on the borrower’s ability to make repayment from the cash flow of the borrower’s business. At September 30, 2024 and December 31, 2023, C&I loans included Small Business Administration and United States Department of Agriculture guaranteed certificates of $54.8 million and $10.6 million, respectively. Warehouse Lending. Loans originated to non-depository financial institutions and secured by notes originated by the non-depository financial institution. The Company has two distinct warehouse lending divisions: commercial warehouse re-lending secured by notes on construction loans and mortgage warehouse re-lending secured by notes on one-to-four-family loans. The Company’s commercial construction warehouse lines are secured by notes on construction loans and typically guaranteed by principals with experience in construction lending. Mortgage warehouse lending loans are funded through third-party residential mortgage bankers. Under this program the Company provides short-term funding to the mortgage banking companies for the purpose of originating residential mortgage loans for sale into the secondary market. Allowance for Credit Losses The main reason for the provision for credit losses on loans recorded in the first nine months of 2024 was elevated net charge-offs. The following tables detail activity in the ACL on loans by loan categories at or for the three and nine months ended September 30, 2024 and 2023:
|  | At or For the Three Months Ended September 30, 2024 |
|  | Real |  |  |  |  |  |  | Commercial |  |  |  |  |  |  |  |  |
ACL ON LOANS |  | Estate |  |  | Consumer |  |  | Business |  |  | Unallocated |  |  | Total |
Beginning balance |  | $ | 14,088 |  |  | $ | 13,253 |  |  | $ | 3,897 |  |  | $ | — |  |  | $ | 31,238 |
Provision for (reversal of) credit losses on loans |  |  | 46 |  |  |  | 2,102 |  |  |  | (557 | ) |  |  | — |  |  |  | 1,591 |
Charge-offs |  |  | — |  |  |  | (1,964 | ) |  |  | — |  |  |  | — |  |  |  | (1,964 | )
Recoveries |  |  | — |  |  |  | 361 |  |  |  | 6 |  |  |  | — |  |  |  | 367 |
Net (charge-offs) recoveries |  |  | — |  |  |  | (1,603 | ) |  |  | 6 |  |  |  | — |  |  |  | (1,597 | )
Total ending ACL balance |  | $ | 14,134 |  |  | $ | 13,752 |  |  | $ | 3,346 |  |  | $ | — |  |  | $ | 31,232 |
|  | At or For the Three Months Ended September 30, 2023 |
|  | Real |  |  |  |  |  |  | Commercial |  |  |  |  |  |  |  |  |
ACL ON LOANS |  | Estate |  |  | Consumer |  |  | Business |  |  | Unallocated |  |  | Total |
Beginning balance |  | $ | 12,307 |  |  | $ | 14,017 |  |  | $ | 4,026 |  |  | $ | — |  |  | $ | 30,350 |
Provision for (reversal of) credit losses on loans |  |  | 496 |  |  |  | 426 |  |  |  | (238 | ) |  |  | — |  |  |  | 684 |
Charge-offs |  |  | — |  |  |  | (830 | ) |  |  | — |  |  |  | — |  |  |  | (830 | )
Recoveries |  |  | — |  |  |  | 297 |  |  |  | — |  |  |  | — |  |  |  | 297 |
Net charge-offs |  |  | — |  |  |  | (533 | ) |  |  | — |  |  |  | — |  |  |  | (533 | )
Total ending ACL balance |  | $ | 12,803 |  |  | $ | 13,910 |  |  | $ | 3,788 |  |  | $ | — |  |  | $ | 30,501 |
|  | At or For the Nine Months Ended September 30, 2024 |
|  | Real |  |  |  |  |  |  | Commercial |  |  |  |  |  |  |  |  |
ACL ON LOANS |  | Estate |  |  | Consumer |  |  | Business |  |  | Unallocated |  |  | Total |
Beginning balance |  | $ | 14,107 |  |  | $ | 13,357 |  |  | $ | 4,070 |  |  | $ | — |  |  | $ | 31,534 |
Provision for credit losses on loans |  |  | 27 |  |  |  | 3,660 |  |  |  | 326 |  |  |  | — |  |  |  | 4,013 |
Charge-offs |  |  | — |  |  |  | (4,465 | ) |  |  | (1,141 | ) |  |  | — |  |  |  | (5,606 | )
Recoveries |  |  | — |  |  |  | 1,200 |  |  |  | 91 |  |  |  | — |  |  |  | 1,291 |
Net Charge-offs |  |  | — |  |  |  | (3,265 | ) |  |  | (1,050 | ) |  |  | — |  |  |  | (4,315 | )
Total ending ACL balance |  | $ | 14,134 |  |  | $ | 13,752 |  |  | $ | 3,346 |  |  | $ | — |  |  | $ | 31,232 |
|  | At or For the Nine Months Ended September 30, 2023 |
|  | Real |  |  |  |  |  |  | Commercial |  |  |  |  |  |  |  |  |
ACL ON LOANS |  | Estate |  |  | Consumer |  |  | Business |  |  | Unallocated |  |  | Total |
Beginning balance |  | $ | 12,123 |  |  | $ | 12,109 |  |  | $ | 3,760 |  |  | $ | — |  |  | $ | 27,992 |
Provision for credit losses on loans |  |  | 690 |  |  |  | 3,383 |  |  |  | 29 |  |  |  | — |  |  |  | 4,102 |
Charge-offs |  |  | (10 | ) |  |  | (2,415 | ) |  |  | (1 | ) |  |  | — |  |  |  | (2,426 | )
Recoveries |  |  | — |  |  |  | 833 |  |  |  | — |  |  |  | — |  |  |  | 833 |
Net charge-offs |  |  | (10 | ) |  |  | (1,582 | ) |  |  | (1 | ) |  |  | — |  |  |  | (1,593 | )
Total ending ACL balance |  | $ | 12,803 |  |  | $ | 13,910 |  |  | $ | 3,788 |  |  | $ | — |  |  | $ | 30,501 |
Nonaccrual and Past Due Loans. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are automatically placed on nonaccrual once the loan is 90 days past due or sooner if, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, or as required by regulatory authorities. Loan Modifications to Borrowers Experiencing Financial Difficulty The Company may modify the contractual terms of a loan to a borrower experiencing financial difficulty as a part of ongoing loss mitigation strategies. These modifications may result in an interest rate reduction, term extension, an other-than-insignificant payment delay, or a combination thereof. The Company typically does not offer principal forgiveness. An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification. The effect of most modifications made to borrowers experiencing financial difficulty is already included in the ACL on loans because of the measurement methodologies used to estimate the allowance. The following tables present the amortized cost basis of loans that were modified to borrowers experiencing financial difficulty at the end of the reporting periods by loan class and modification type.
|  | Payment Deferral
|  | Amortized Cost |  |  | % of Total Loan |  |
September 30, 2024 |  | Basis |  |  | Type |  | Financial Effect
CRE |  | $ | 1,130 |  |  |  | 0.3 | % | Deferred payments and capitalized interest for a weighted-average period of 2.3 years.
December 31, 2023 |  |  |  |  |  |  |
CRE |  | $ | 1,088 |  |  |  | 0.3 | % | Deferred payments and capitalized interest for a weighted-average period of 1.5 years.
|  | Combination - Term Extension and Interest Rate Reduction
|  | Amortized Cost |  |  | % of Total Loan |  |
December 31, 2023 |  | Basis |  |  | Type |  | Financial Effect
C&I |  | $ | 2,940 |  |  |  | 1.2 | % | Reduced weighted-average contractual interest rate from 7.5% to 4.1%, and added a weighted-average 5 years to the life of the loans.
At September 30, 2024 and December 31, 2023, the modified loans were in compliance with their modified terms and were classified as current. For the three and nine months ended September 30, 2024 and 2023, no loans experienced a default subsequent to being granted a modification in the last twelve months. There were no unfunded commitments associated with loans modified for borrowers experiencing financial distress as of September 30, 2024. Nonaccrual and Past Due Loans The following tables provide information pertaining to the aging analysis of contractually past due loans and nonaccrual loans at September 30, 2024 and December 31, 2023:
|  | September 30, 2024 |
|  | 30-59 |  |  | 60-89 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Days |  |  | Days |  |  | 90 Days |  |  | Total |  |  |  |  |  |  | Total |  |  |  |  |
|  | Past |  |  | Past |  |  | or More |  |  | Past |  |  |  |  |  |  | Loans |  |  | Non- |
REAL ESTATE LOANS |  | Due |  |  | Due |  |  | Past Due |  |  | Due |  |  | Current |  |  | Receivable |  |  | Accrual (1) |
CRE |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 352,933 |  |  | $ | 352,933 |  |  | $ | 1,130 |
Construction and development |  |  | — |  |  |  | — |  |  |  | 4,737 |  |  |  | 4,737 |  |  |  | 287,629 |  |  |  | 292,366 |  |  |  | 4,737 |
Home equity |  |  | 173 |  |  |  | — |  |  |  | 156 |  |  |  | 329 |  |  |  | 74,734 |  |  |  | 75,063 |  |  |  | 156 |
One-to-four-family |  |  | — |  |  |  | 794 |  |  |  | 1 |  |  |  | 795 |  |  |  | 590,871 |  |  |  | 591,666 |  |  |  | 166 |
Multi-family |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 238,462 |  |  |  | 238,462 |  |  |  | — |
Total real estate loans |  |  | 173 |  |  |  | 794 |  |  |  | 4,894 |  |  |  | 5,861 |  |  |  | 1,544,629 |  |  |  | 1,550,490 |  |  |  | 6,189 |
CONSUMER LOANS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Indirect home improvement |  |  | 2,074 |  |  |  | 1,051 |  |  |  | 718 |  |  |  | 3,843 |  |  |  | 548,383 |  |  |  | 552,226 |  |  |  | 1,770 |
Marine |  |  | 113 |  |  |  | 130 |  |  |  | 142 |  |  |  | 385 |  |  |  | 76,460 |  |  |  | 76,845 |  |  |  | 233 |
Other consumer |  |  | 5 |  |  |  | 3 |  |  |  | — |  |  |  | 8 |  |  |  | 3,338 |  |  |  | 3,346 |  |  |  | 5 |
Total consumer loans |  |  | 2,192 |  |  |  | 1,184 |  |  |  | 860 |  |  |  | 4,236 |  |  |  | 628,181 |  |  |  | 632,417 |  |  |  | 2,008 |
COMMERCIAL BUSINESS LOANS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
C&I |  |  | — |  |  |  | 200 |  |  |  | 1,701 |  |  |  | 1,901 |  |  |  | 294,872 |  |  |  | 296,773 |  |  |  | 2,575 |
Warehouse lending |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 15,249 |  |  |  | 15,249 |  |  |  | — |
Total commercial business loans |  |  | — |  |  |  | 200 |  |  |  | 1,701 |  |  |  | 1,901 |  |  |  | 310,121 |  |  |  | 312,022 |  |  |  | 2,575 |
Total loans |  | $ | 2,365 |  |  | $ | 2,178 |  |  | $ | 7,455 |  |  | $ | 11,998 |  |  | $ | 2,482,931 |  |  | $ | 2,494,929 |  |  | $ | 10,772 |
|  | December 31, 2023 |
|  | 30-59 |  |  | 60-89 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Days |  |  | Days |  |  | 90 Days |  |  | Total |  |  |  |  |  |  | Total |  |  |  |  |
|  | Past |  |  | Past |  |  | or More |  |  | Past |  |  |  |  |  |  | Loans |  |  | Non- |
REAL ESTATE LOANS |  | Due |  |  | Due |  |  | Past Due |  |  | Due |  |  | Current |  |  | Receivable |  |  | Accrual (1) |
CRE |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 366,328 |  |  | $ | 366,328 |  |  | $ | 1,088 |
Construction and development |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 303,054 |  |  |  | 303,054 |  |  |  | 4,699 |
Home equity |  |  | 79 |  |  |  | 25 |  |  |  | 136 |  |  |  | 240 |  |  |  | 69,248 |  |  |  | 69,488 |  |  |  | 173 |
One-to-four-family |  |  | — |  |  |  | 96 |  |  |  | — |  |  |  | 96 |  |  |  | 567,646 |  |  |  | 567,742 |  |  |  | 96 |
Multi-family |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 223,769 |  |  |  | 223,769 |  |  |  | — |
Total real estate loans |  |  | 79 |  |  |  | 121 |  |  |  | 136 |  |  |  | 336 |  |  |  | 1,530,045 |  |  |  | 1,530,381 |  |  |  | 6,056 |
CONSUMER LOANS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Indirect home improvement |  |  | 1,759 |  |  |  | 1,248 |  |  |  | 777 |  |  |  | 3,784 |  |  |  | 566,119 |  |  |  | 569,903 |  |  |  | 1,863 |
Marine |  |  | 373 |  |  |  | 243 |  |  |  | 137 |  |  |  | 753 |  |  |  | 72,557 |  |  |  | 73,310 |  |  |  | 342 |
Other consumer |  |  | 57 |  |  |  | 18 |  |  |  | 6 |  |  |  | 81 |  |  |  | 3,459 |  |  |  | 3,540 |  |  |  | 8 |
Total consumer loans |  |  | 2,189 |  |  |  | 1,509 |  |  |  | 920 |  |  |  | 4,618 |  |  |  | 642,135 |  |  |  | 646,753 |  |  |  | 2,213 |
COMMERCIAL BUSINESS LOANS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
C&I |  |  | — |  |  |  | — |  |  |  | 2,514 |  |  |  | 2,514 |  |  |  | 235,787 |  |  |  | 238,301 |  |  |  | 2,683 |
Warehouse lending |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 17,580 |  |  |  | 17,580 |  |  |  | — |
Total commercial business loans |  |  | — |  |  |  | — |  |  |  | 2,514 |  |  |  | 2,514 |  |  |  | 253,367 |  |  |  | 255,881 |  |  |  | 2,683 |
Total loans |  | $ | 2,268 |  |  | $ | 1,630 |  |  | $ | 3,570 |  |  | $ | 7,468 |  |  | $ | 2,425,547 |  |  | $ | 2,433,015 |  |  | $ | 10,952 |
| (1) | Includes loans less than 90 days past due as applicable.
There were no loans 90 days or more past due and still accruing interest at both September 30, 2024 and December 31, 2023. Credit Quality Indicators As part of the Company’s on-going monitoring of credit quality of the loan portfolio, management tracks certain credit quality indicators including trends related to (i) the risk grading of loans, (ii) the level of classified loans, (iii) net charge-offs, (iv) non-performing loans, and (v) the general economic conditions in the Company’s markets. The Company utilizes a risk grading matrix to assign a risk grade to its real estate and commercial business loans. Loans are graded on a scale of 1 to 10, with loans in risk grades 1 to 6 reported as “Pass” and loans in risk grades 7 to 10 reported as classified loans in the Company’s ACL analysis. A description of the 10 risk grades is as follows:
| ● | Grades 1 and 2 - These grades include loans to very high-quality borrowers with excellent or desirable business credit.
| ● | Grade 3 - This grade includes loans to borrowers of good business credit with moderate risk.
| ● | Grades 4 and 5 - These grades include “Pass” grade loans to borrowers of average credit quality and risk.
| ● | Grade 6 - This grade includes loans on management’s “Watch” list and is intended to be utilized on a temporary basis for “Pass” grade borrowers where frequent and thorough monitoring is required due to credit weaknesses and where significant risk-modifying action is anticipated in the near term.
| ● | Grade 7 - This grade is for “Other Assets Especially Mentioned (“OAEM”)” or “Special Mention” in accordance with regulatory guidelines and includes borrowers where performance is poor or significantly less than expected.
| ● | Grade 8 - This grade includes “Substandard” loans in accordance with regulatory guidelines which represent an unacceptable business credit where a loss is possible if loan weakness is not corrected.
| ● | Grade 9 - This grade includes “Doubtful” loans in accordance with regulatory guidelines where a loss is highly probable.
| ● | Grade 10 - This grade includes “Loss” loans in accordance with regulatory guidelines for which total loss is expected and when identified are charged off.
Homogeneous loans are risk rated based upon the Federal Financial Institutions Examination Council’s Uniform Retail Credit Classification and Account Management Policy. Loans classified under this policy at the Company are consumer loans which include indirect home improvement, solar, marine, other consumer, and one-to-four-family first and second liens. Under the Uniform Retail Credit Classification and Account Management Policy, loans that are current or less than 90 days past due are graded “Pass” and risk rated “4” or “5” internally. Loans that are past due more than 90 days are classified “Substandard” and risk graded “8” internally until the loan has demonstrated consistent performance, typically six months of contractual payments. Closed-end loans that are 120 days past due and open-end loans that are 180 days past due are charged off based on the value of the collateral less cost to sell. Management may choose to conservatively risk rate credits even if paying in accordance with the loan’s repayment terms. CRE, construction and development, multi-family and commercial business loans are evaluated individually for their risk classification and may be classified as “Substandard” even if current on their loan payment obligations. We regularly review our credits for accuracy of risk grades whenever we receive new information. Borrowers are generally required to submit financial information at regular intervals. Typically, commercial borrowers with lines of credit are required to submit financial information with reporting intervals ranging from monthly to annually depending on credit size, risk, and complexity. In addition, nonowner-occupied CRE borrowers with loans exceeding a certain dollar threshold are usually required to submit rent rolls or property income statements annually. We monitor construction loans monthly. We also review loans graded “Watch” or worse, regardless of loan type, no less than quarterly. The following tables summarize risk rated loan balances and total current period gross charge-offs by category, as of the dates indicated. Term loans that were renewed or extended for periods longer than 90 days are presented as new originations in the year of the most recent renewal or extension.
|  | September 30, 2024 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Revolving |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Loans |  |  |  |  |
REAL ESTATE LOANS |  | Term Loans by Year of Origination |  | Revolving |  |  | Converted |  |  | Total |
CRE |  | 2024 |  |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | 2020 |  |  | Prior |  |  | Loans |  |  | to Term |  |  | Loans |
Pass |  | $ | 13,453 |  |  | $ | 47,964 |  |  | $ | 84,510 |  |  | $ | 57,376 |  |  | $ | 44,025 |  |  | $ | 67,735 |  |  | $ | — |  |  | $ | 691 |  |  | $ | 315,754 |
Watch |  |  | — |  |  |  | 3,152 |  |  |  | 10,742 |  |  |  | 12,716 |  |  |  | — |  |  |  | 6,568 |  |  |  | — |  |  |  | — |  |  |  | 33,178 |
Special mention |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 397 |  |  |  | — |  |  |  | — |  |  |  | 397 |
Substandard |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,625 |  |  |  | 1,979 |  |  |  | — |  |  |  | — |  |  |  | 3,604 |
Total CRE |  |  | 13,453 |  |  |  | 51,116 |  |  |  | 95,252 |  |  |  | 70,092 |  |  |  | 45,650 |  |  |  | 76,679 |  |  |  | — |  |  |  | 691 |  |  |  | 352,933 |
Construction and development |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | 116,349 |  |  |  | 91,803 |  |  |  | 38,290 |  |  |  | 30,046 |  |  |  | — |  |  |  | 394 |  |  |  | 10,324 |  |  |  | — |  |  |  | 287,206 |
Watch |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 423 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 423 |
Substandard |  |  | — |  |  |  | — |  |  |  | 4,737 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 4,737 |
Total construction and development |  |  | 116,349 |  |  |  | 91,803 |  |  |  | 43,027 |  |  |  | 30,469 |  |  |  | — |  |  |  | 394 |  |  |  | 10,324 |  |  |  | — |  |  |  | 292,366 |
Home equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | 7,181 |  |  |  | 2,787 |  |  |  | 332 |  |  |  | 1,550 |  |  |  | 5,980 |  |  |  | 1,714 |  |  |  | 55,298 |  |  |  | 65 |  |  |  | 74,907 |
Substandard |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 14 |  |  |  | 142 |  |  |  | — |  |  |  | 156 |
Total home equity |  |  | 7,181 |  |  |  | 2,787 |  |  |  | 332 |  |  |  | 1,550 |  |  |  | 5,980 |  |  |  | 1,728 |  |  |  | 55,440 |  |  |  | 65 |  |  |  | 75,063 |
One-to-four-family |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | 45,301 |  |  |  | 106,192 |  |  |  | 177,351 |  |  |  | 112,198 |  |  |  | 78,300 |  |  |  | 69,528 |  |  |  | — |  |  |  | — |  |  |  | 588,870 |
Substandard |  |  | — |  |  |  | — |  |  |  | 745 |  |  |  | — |  |  |  | — |  |  |  | 2,051 |  |  |  | — |  |  |  | — |  |  |  | 2,796 |
Total one-to-four-family |  |  | 45,301 |  |  |  | 106,192 |  |  |  | 178,096 |  |  |  | 112,198 |  |  |  | 78,300 |  |  |  | 71,579 |  |  |  | — |  |  |  | — |  |  |  | 591,666 |
Multi-family |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | 209 |  |  |  | 7,050 |  |  |  | 20,177 |  |  |  | 90,403 |  |  |  | 60,088 |  |  |  | 60,535 |  |  |  | — |  |  |  | — |  |  |  | 238,462 |
Total multi-family |  |  | 209 |  |  |  | 7,050 |  |  |  | 20,177 |  |  |  | 90,403 |  |  |  | 60,088 |  |  |  | 60,535 |  |  |  | — |  |  |  | — |  |  |  | 238,462 |
Total real estate loans |  | $ | 182,493 |  |  | $ | 258,948 |  |  | $ | 336,884 |  |  | $ | 304,712 |  |  | $ | 190,018 |  |  | $ | 210,915 |  |  | $ | 65,764 |  |  | $ | 756 |  |  | $ | 1,550,490 |
|  | September 30, 2024 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Revolving |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Loans |  |  |  |  |
CONSUMER LOANS |  | Term Loans by Year of Origination |  | Revolving |  |  | Converted |  |  | Total |
Indirect home improvement |  | 2024 |  |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | 2020 |  |  | Prior |  |  | Loans |  |  | to Term |  |  | Loans |
Pass |  | $ | 80,016 |  |  | $ | 140,198 |  |  | $ | 177,755 |  |  | $ | 78,798 |  |  | $ | 29,826 |  |  | $ | 43,861 |  |  | $ | 2 |  |  | $ | — |  |  | $ | 550,456 |
Substandard |  |  | 54 |  |  |  | 488 |  |  |  | 701 |  |  |  | 242 |  |  |  | 63 |  |  |  | 222 |  |  |  | — |  |  |  | — |  |  |  | 1,770 |
Total indirect home improvement |  |  | 80,070 |  |  |  | 140,686 |  |  |  | 178,456 |  |  |  | 79,040 |  |  |  | 29,889 |  |  |  | 44,083 |  |  |  | 2 |  |  |  | — |  |  |  | 552,226 |
Indirect home improvement gross charge-offs |  |  | 235 |  |  |  | 1,021 |  |  |  | 1,137 |  |  |  | 494 |  |  |  | 500 |  |  |  | 448 |  |  |  | — |  |  |  | — |  |  |  | 3,835 |
Marine |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | 12,738 |  |  |  | 11,866 |  |  |  | 21,334 |  |  |  | 8,712 |  |  |  | 11,541 |  |  |  | 10,421 |  |  |  | — |  |  |  | — |  |  |  | 76,612 |
Substandard |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 41 |  |  |  | 192 |  |  |  | — |  |  |  | — |  |  |  | 233 |
Total marine |  |  | 12,738 |  |  |  | 11,866 |  |  |  | 21,334 |  |  |  | 8,712 |  |  |  | 11,582 |  |  |  | 10,613 |  |  |  | — |  |  |  | — |  |  |  | 76,845 |
Marine gross charge-offs |  |  | — |  |  |  | 21 |  |  |  | 128 |  |  |  | 51 |  |  |  | 128 |  |  |  | 151 |  |  |  | — |  |  |  | — |  |  |  | 479 |
Other consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | 219 |  |  |  | 145 |  |  |  | 384 |  |  |  | 83 |  |  |  | 43 |  |  |  | 146 |  |  |  | 2,321 |  |  |  | — |  |  |  | 3,341 |
Substandard |  |  | 1 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 4 |  |  |  | — |  |  |  | 5 |
Total other consumer |  |  | 220 |  |  |  | 145 |  |  |  | 384 |  |  |  | 83 |  |  |  | 43 |  |  |  | 146 |  |  |  | 2,325 |  |  |  | — |  |  |  | 3,346 |
Other consumer gross charge-offs |  |  | — |  |  |  | 33 |  |  |  | 6 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 112 |  |  |  | — |  |  |  | 151 |
Total consumer loans |  | $ | 93,028 |  |  | $ | 152,697 |  |  | $ | 200,174 |  |  | $ | 87,835 |  |  | $ | 41,514 |  |  | $ | 54,842 |  |  | $ | 2,327 |  |  | $ | — |  |  | $ | 632,417 |
|  | September 30, 2024 |
COMMERCIAL |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Revolving |  |  |  |  |
|  |  |  |  |  |  |  |  | Loans |  |  |  |  |
BUSINESS LOANS |  | Term Loans by Year of Origination |  |  | Revolving |  |  | Converted |  |  | Total |
C&I |  | 2024 |  |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | 2020 |  |  | Prior |  |  | Loans |  |  | to Term |  |  | Loans |
Pass |  | $ | 56,627 |  |  | $ | 20,708 |  |  | $ | 30,522 |  |  | $ | 17,288 |  |  | $ | 9,750 |  |  | $ | 11,787 |  |  | $ | 119,310 |  |  | $ | 846 |  |  | $ | 266,838 |
Watch |  |  | — |  |  |  | 4,982 |  |  |  | — |  |  |  | 773 |  |  |  | 1,941 |  |  |  | — |  |  |  | 9,792 |  |  |  | — |  |  |  | 17,488 |
Special mention |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 555 |  |  |  | — |  |  |  | 605 |  |  |  | 1,408 |  |  |  | — |  |  |  | 2,568 |
Substandard |  |  | — |  |  |  | 2,546 |  |  |  | — |  |  |  | 2,260 |  |  |  | 1,256 |  |  |  | 1,552 |  |  |  | 2,265 |  |  |  | — |  |  |  | 9,879 |
Total C&I |  |  | 56,627 |  |  |  | 28,236 |  |  |  | 30,522 |  |  |  | 20,876 |  |  |  | 12,947 |  |  |  | 13,944 |  |  |  | 132,775 |  |  |  | 846 |  |  |  | 296,773 |
C&I gross charge-offs |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 380 |  |  |  | 761 |  |  |  | — |  |  |  | 1,141 |
Warehouse lending |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 13,254 |  |  |  | — |  |  |  | 13,254 |
Special mention |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,995 |  |  |  | — |  |  |  | 1,995 |
Total warehouse lending |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 15,249 |  |  |  | — |  |  |  | 15,249 |
Total commercial business loans |  | $ | 56,627 |  |  | $ | 28,236 |  |  | $ | 30,522 |  |  | $ | 20,876 |  |  | $ | 12,947 |  |  | $ | 13,944 |  |  | $ | 148,024 |  |  | $ | 846 |  |  | $ | 312,022 |
TOTAL LOANS RECEIVABLE, GROSS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 332,093 |  |  | $ | 428,713 |  |  | $ | 550,655 |  |  | $ | 396,454 |  |  | $ | 239,553 |  |  | $ | 266,121 |  |  | $ | 200,509 |  |  | $ | 1,602 |  |  | $ | 2,415,700 |
Watch |  |  | — |  |  |  | 8,134 |  |  |  | 10,742 |  |  |  | 13,912 |  |  |  | 1,941 |  |  |  | 6,568 |  |  |  | 9,792 |  |  |  | — |  |  |  | 51,089 |
Special mention |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 555 |  |  |  | — |  |  |  | 1,002 |  |  |  | 3,403 |  |  |  | — |  |  |  | 4,960 |
Substandard |  |  | 55 |  |  |  | 3,034 |  |  |  | 6,183 |  |  |  | 2,502 |  |  |  | 2,985 |  |  |  | 6,010 |  |  |  | 2,411 |  |  |  | — |  |  |  | 23,180 |
Total loans receivable, gross |  | $ | 332,148 |  |  | $ | 439,881 |  |  | $ | 567,580 |  |  | $ | 413,423 |  |  | $ | 244,479 |  |  | $ | 279,701 |  |  | $ | 216,115 |  |  | $ | 1,602 |  |  | $ | 2,494,929 |
Total gross charge-offs |  | $ | 235 |  |  | $ | 1,075 |  |  | $ | 1,271 |  |  | $ | 545 |  |  | $ | 628 |  |  | $ | 979 |  |  | $ | 873 |  |  | $ | — |  |  | $ | 5,606 |
|  | December 31, 2023 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Revolving |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Loans |  |  |  |  |
REAL ESTATE LOANS |  | Term Loans by Year of Origination |  | Revolving |  |  | Converted |  |  | Total |
CRE |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | 2020 |  |  | 2019 |  |  | Prior |  |  | Loans |  |  | to Term |  |  | Loans |
Pass |  | $ | 48,551 |  |  | $ | 91,144 |  |  | $ | 61,689 |  |  | $ | 46,117 |  |  | $ | 27,957 |  |  | $ | 61,764 |  |  | $ | 499 |  |  | $ | — |  |  | $ | 337,721 |
Watch |  |  | 3,201 |  |  |  | 5,446 |  |  |  | 12,894 |  |  |  | — |  |  |  | 453 |  |  |  | 2,226 |  |  |  | 45 |  |  |  | — |  |  |  | 24,265 |
Special mention |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 409 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 409 |
Substandard |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,650 |  |  |  | — |  |  |  | 1,957 |  |  |  | — |  |  |  | 326 |  |  |  | 3,933 |
Total CRE |  |  | 51,752 |  |  |  | 96,590 |  |  |  | 74,583 |  |  |  | 47,767 |  |  |  | 28,819 |  |  |  | 65,947 |  |  |  | 544 |  |  |  | 326 |  |  |  | 366,328 |
Construction and development |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | 120,155 |  |  |  | 106,168 |  |  |  | 46,989 |  |  |  | 15,219 |  |  |  | — |  |  |  | 540 |  |  |  | 9,284 |  |  |  | — |  |  |  | 298,355 |
Substandard |  |  | — |  |  |  | 4,699 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 4,699 |
Total construction and development |  |  | 120,155 |  |  |  | 110,867 |  |  |  | 46,989 |  |  |  | 15,219 |  |  |  | — |  |  |  | 540 |  |  |  | 9,284 |  |  |  | — |  |  |  | 303,054 |
Home equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | 4,583 |  |  |  | 398 |  |  |  | 1,584 |  |  |  | 6,525 |  |  |  | 11 |  |  |  | 2,137 |  |  |  | 54,077 |  |  |  | — |  |  |  | 69,315 |
Substandard |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 36 |  |  |  | 137 |  |  |  | — |  |  |  | 173 |
Total home equity |  |  | 4,583 |  |  |  | 398 |  |  |  | 1,584 |  |  |  | 6,525 |  |  |  | 11 |  |  |  | 2,173 |  |  |  | 54,214 |  |  |  | — |  |  |  | 69,488 |
Home equity gross charge-offs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 10 |  |  |  |  |  |  |  | 10 |
One-to-four-family |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | — |  |  |  |  |  |  |  |  |
Pass |  |  | 103,165 |  |  |  | 175,412 |  |  |  | 122,406 |  |  |  | 80,815 |  |  |  | 30,595 |  |  |  | 52,008 |  |  |  | — |  |  |  | 472 |  |  |  | 564,873 |
Substandard |  |  | — |  |  |  | 866 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,003 |  |  |  | — |  |  |  | — |  |  |  | 2,869 |
Total one-to-four-family |  |  | 103,165 |  |  |  | 176,278 |  |  |  | 122,406 |  |  |  | 80,815 |  |  |  | 30,595 |  |  |  | 54,011 |  |  |  | — |  |  |  | 472 |  |  |  | 567,742 |
Multi-family |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | 7,106 |  |  |  | 20,404 |  |  |  | 91,047 |  |  |  | 42,511 |  |  |  | 37,990 |  |  |  | 24,711 |  |  |  | — |  |  |  | — |  |  |  | 223,769 |
Total multi-family |  |  | 7,106 |  |  |  | 20,404 |  |  |  | 91,047 |  |  |  | 42,511 |  |  |  | 37,990 |  |  |  | 24,711 |  |  |  | — |  |  |  | — |  |  |  | 223,769 |
Total real estate loans |  | $ | 286,761 |  |  | $ | 404,537 |  |  | $ | 336,609 |  |  | $ | 192,837 |  |  | $ | 97,415 |  |  | $ | 147,382 |  |  | $ | 64,042 |  |  | $ | 798 |  |  | $ | 1,530,381 |
|  | December 31, 2023 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Revolving |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Loans |  |  |  |  |
CONSUMER LOANS |  | Term Loans by Year of Origination |  | Revolving |  |  | Converted |  |  | Total |
Indirect home improvement |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | 2020 |  |  | 2019 |  |  | Prior |  |  | Loans |  |  | to Term |  |  | Loans |
Pass |  | $ | 171,208 |  |  | $ | 212,661 |  |  | $ | 93,664 |  |  | $ | 36,032 |  |  | $ | 23,977 |  |  | $ | 30,492 |  |  | $ | 6 |  |  | $ | — |  |  | $ | 568,040 |
Substandard |  |  | 212 |  |  |  | 663 |  |  |  | 448 |  |  |  | 141 |  |  |  | 258 |  |  |  | 141 |  |  |  | — |  |  |  | — |  |  |  | 1,863 |
Total indirect home improvement |  |  | 171,420 |  |  |  | 213,324 |  |  |  | 94,112 |  |  |  | 36,173 |  |  |  | 24,235 |  |  |  | 30,633 |  |  |  | 6 |  |  |  | — |  |  |  | 569,903 |
Indirect home improvement gross charge-offs |  |  | 204 |  |  |  | 1,386 |  |  |  | 567 |  |  |  | 290 |  |  |  | 145 |  |  |  | 336 |  |  |  | — |  |  |  | — |  |  |  | 2,928 |
Marine |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | 13,619 |  |  |  | 23,963 |  |  |  | 9,987 |  |  |  | 13,082 |  |  |  | 5,267 |  |  |  | 7,050 |  |  |  | — |  |  |  | — |  |  |  | 72,968 |
Substandard |  |  | — |  |  |  | — |  |  |  | 52 |  |  |  | 85 |  |  |  | — |  |  |  | 205 |  |  |  | — |  |  |  | — |  |  |  | 342 |
Total marine |  |  | 13,619 |  |  |  | 23,963 |  |  |  | 10,039 |  |  |  | 13,167 |  |  |  | 5,267 |  |  |  | 7,255 |  |  |  | — |  |  |  | — |  |  |  | 73,310 |
Marine gross charge-offs |  |  | — |  |  |  | 47 |  |  |  | 93 |  |  |  | — |  |  |  | 7 |  |  |  | 256 |  |  |  | — |  |  |  | — |  |  |  | 403 |
Other consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | 309 |  |  |  | 559 |  |  |  | 175 |  |  |  | 69 |  |  |  | 3 |  |  |  | 159 |  |  |  | 2,258 |  |  |  | — |  |  |  | 3,532 |
Substandard |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 8 |  |  |  | — |  |  |  | 8 |
Total other consumer |  |  | 309 |  |  |  | 559 |  |  |  | 175 |  |  |  | 69 |  |  |  | 3 |  |  |  | 159 |  |  |  | 2,266 |  |  |  | — |  |  |  | 3,540 |
Other consumer gross charge-offs |  |  | — |  |  |  | 2 |  |  |  | 12 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 120 |  |  |  | — |  |  |  | 134 |
Total consumer loans |  | $ | 185,348 |  |  | $ | 237,846 |  |  | $ | 104,326 |  |  | $ | 49,409 |  |  | $ | 29,505 |  |  | $ | 38,047 |  |  | $ | 2,272 |  |  | $ | — |  |  | $ | 646,753 |
|  | December 31, 2023 |
|  |  |  |  |  |  |  |  | Revolving |  |  |  |  |
COMMERCIAL |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Loans |  |  |  |  |
BUSINESS LOANS |  | Term Loans by Year of Origination |  |  | Revolving |  |  | Converted |  |  | Total |
C&I |  | 2023 |  |  | 2022 |  |  | 2021 |  |  | 2020 |  |  | 2019 |  |  | Prior |  |  | Loans |  |  | to Term |  |  | Loans |
Pass |  | $ | 13,971 |  |  | $ | 32,334 |  |  | $ | 19,634 |  |  | $ | 11,537 |  |  | $ | 5,122 |  |  | $ | 9,707 |  |  | $ | 119,844 |  |  | $ | 145 |  |  | $ | 212,294 |
Watch |  |  | 2,322 |  |  |  | — |  |  |  | 1,382 |  |  |  | 2,366 |  |  |  | — |  |  |  | 953 |  |  |  | 5,754 |  |  |  | — |  |  |  | 12,777 |
Special mention |  |  | 143 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 498 |  |  |  | 253 |  |  |  | 1,345 |  |  |  | — |  |  |  | 2,239 |
Substandard |  |  | 2,940 |  |  |  | — |  |  |  | 2,321 |  |  |  | 1,391 |  |  |  | 1,766 |  |  |  | 169 |  |  |  | 2,005 |  |  |  | — |  |  |  | 10,592 |
Doubtful |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 399 |  |  |  | — |  |  |  | 399 |
Total C&I |  |  | 19,376 |  |  |  | 32,334 |  |  |  | 23,337 |  |  |  | 15,294 |  |  |  | 7,386 |  |  |  | 11,082 |  |  |  | 129,347 |  |  |  | 145 |  |  |  | 238,301 |
C&I gross charge-offs |  |  | — |  |  |  | — |  |  |  | 1 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1 |
Warehouse lending |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 17,003 |  |  |  | — |  |  |  | 17,003 |
Watch |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 577 |  |  |  | — |  |  |  | 577 |
Total warehouse lending |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 17,580 |  |  |  | — |  |  |  | 17,580 |
Total commercial business loans |  | $ | 19,376 |  |  | $ | 32,334 |  |  | $ | 23,337 |  |  | $ | 15,294 |  |  | $ | 7,386 |  |  | $ | 11,082 |  |  | $ | 146,927 |  |  | $ | 145 |  |  | $ | 255,881 |
TOTAL LOANS RECEIVABLE, GROSS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 482,667 |  |  | $ | 663,043 |  |  | $ | 447,175 |  |  | $ | 251,907 |  |  | $ | 130,922 |  |  | $ | 188,568 |  |  | $ | 202,971 |  |  | $ | 617 |  |  | $ | 2,367,870 |
Watch |  |  | 5,523 |  |  |  | 5,446 |  |  |  | 14,276 |  |  |  | 2,366 |  |  |  | 453 |  |  |  | 3,179 |  |  |  | 6,376 |  |  |  | — |  |  |  | 37,619 |
Special mention |  |  | 143 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 907 |  |  |  | 253 |  |  |  | 1,345 |  |  |  | — |  |  |  | 2,648 |
Substandard |  |  | 3,152 |  |  |  | 6,228 |  |  |  | 2,821 |  |  |  | 3,267 |  |  |  | 2,024 |  |  |  | 4,511 |  |  |  | 2,150 |  |  |  | 326 |  |  |  | 24,479 |
Doubtful |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 399 |  |  |  | — |  |  |  | 399 |
Total loans receivable, gross |  | $ | 491,485 |  |  | $ | 674,717 |  |  | $ | 464,272 |  |  | $ | 257,540 |  |  | $ | 134,306 |  |  | $ | 196,511 |  |  | $ | 213,241 |  |  | $ | 943 |  |  | $ | 2,433,015 |
Total gross charge-offs |  | $ | 204 |  |  | $ | 1,435 |  |  | $ | 673 |  |  | $ | 290 |  |  | $ | 152 |  |  | $ | 592 |  |  | $ | 130 |  |  | $ | — |  |  | $ | 3,476 |
The following table presents the amortized cost basis of loans on nonaccrual status as of the dates indicated:
|  | September 30, 2024 |  |  | December 31, 2023 |
|  | Nonaccrual with |  |  | Nonaccrual with |  |  | Total |  |  | Nonaccrual with |  |  | Nonaccrual with |  |  | Total |
REAL ESTATE LOANS |  | No ACL |  |  | ACL |  |  | Nonaccrual |  |  | No ACL |  |  | ACL |  |  | Nonaccrual |
CRE |  | $ | 1,130 |  |  | $ | — |  |  | $ | 1,130 |  |  | $ | 1,088 |  |  | $ | — |  |  | $ | 1,088 |
Construction and development |  |  | — |  |  |  | 4,737 |  |  |  | 4,737 |  |  |  | — |  |  |  | 4,699 |  |  |  | 4,699 |
Home equity |  |  | 156 |  |  |  | — |  |  |  | 156 |  |  |  | 173 |  |  |  | — |  |  |  | 173 |
One-to-four-family |  |  | 166 |  |  |  | — |  |  |  | 166 |  |  |  | 96 |  |  |  | — |  |  |  | 96 |
|  |  | 1,452 |  |  |  | 4,737 |  |  |  | 6,189 |  |  |  | 1,357 |  |  |  | 4,699 |  |  |  | 6,056 |
CONSUMER LOANS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Indirect home improvement |  |  | — |  |  |  | 1,770 |  |  |  | 1,770 |  |  |  | — |  |  |  | 1,863 |  |  |  | 1,863 |
Marine |  |  | — |  |  |  | 233 |  |  |  | 233 |  |  |  | — |  |  |  | 342 |  |  |  | 342 |
Other consumer |  |  | — |  |  |  | 5 |  |  |  | 5 |  |  |  | — |  |  |  | 8 |  |  |  | 8 |
|  |  | — |  |  |  | 2,008 |  |  |  | 2,008 |  |  |  | — |  |  |  | 2,213 |  |  |  | 2,213 |
COMMERCIAL BUSINESS LOANS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
C&I |  |  | 1,650 |  |  |  | 925 |  |  |  | 2,575 |  |  |  | — |  |  |  | 2,683 |  |  |  | 2,683 |
Total |  | $ | 3,102 |  |  | $ | 7,670 |  |  | $ | 10,772 |  |  | $ | 1,357 |  |  | $ | 9,595 |  |  | $ | 10,952 |
The Company recognized interest income on a cash basis for nonaccrual loans of $41,000 and $55,000 during the three months ended September 30, 2024 and 2023, and $244,000 and $164,000 during the nine months ended September 30, 2024 and 2023, respectively. The following table presents the amortized cost basis of collateral dependent loans by class of loans as of the dates indicated:
|  | September 30, 2024 |  |  | December 31, 2023 |
|  | Commercial |  |  | Residential |  |  | Other |  |  |  |  |  |  | Commercial |  |  | Residential |  |  | Other |  |  |  |  |
REAL ESTATE LOANS |  | Real Estate |  |  | Real Estate |  |  | Non-Real Estate |  |  | Total |  |  | Real Estate |  |  | Real Estate |  |  | Non-Real Estate |  |  | Total |
CRE |  | $ | 1,130 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,130 |  |  | $ | 1,088 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,088 |
Construction and development |  |  | 4,737 |  |  |  | — |  |  |  | — |  |  |  | 4,737 |  |  |  | 4,699 |  |  |  | — |  |  |  |  |  |  |  | 4,699 |
Home equity |  |  | — |  |  |  | 156 |  |  |  | — |  |  |  | 156 |  |  |  | — |  |  |  | 173 |  |  |  | — |  |  |  | 173 |
One-to-four-family |  |  | — |  |  |  | 166 |  |  |  | — |  |  |  | 166 |  |  |  | — |  |  |  | 96 |  |  |  | — |  |  |  | 96 |
|  |  | 5,867 |  |  |  | 322 |  |  |  | — |  |  |  | 6,189 |  |  |  | 5,787 |  |  |  | 269 |  |  |  | — |  |  |  | 6,056 |
CONSUMER LOANS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Indirect home improvement |  |  | — |  |  |  | — |  |  |  | 1,770 |  |  |  | 1,770 |  |  |  | — |  |  |  | — |  |  |  | 1,863 |  |  |  | 1,863 |
Marine |  |  | — |  |  |  | — |  |  |  | 233 |  |  |  | 233 |  |  |  | — |  |  |  | — |  |  |  | 342 |  |  |  | 342 |
|  |  | — |  |  |  | — |  |  |  | 2,003 |  |  |  | 2,003 |  |  |  | — |  |  |  | — |  |  |  | 2,205 |  |  |  | 2,205 |
COMMERCIAL BUSINESS LOANS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
C&I |  |  | — |  |  |  | — |  |  |  | 2,575 |  |  |  | 2,575 |  |  |  | — |  |  |  | — |  |  |  | 2,683 |  |  |  | 2,683 |
Total |  | $ | 5,867 |  |  | $ | 322 |  |  | $ | 4,578 |  |  | $ | 10,767 |  |  | $ | 5,787 |  |  | $ | 269 |  |  | $ | 4,888 |  |  | $ | 10,944 |

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